Mapping the Blockchain^s Decentralized Finance Characteristics
Andry Alamsyah(a), Gede Natha Wijaya Kusuma(b), Dian Puteri Ramadhani(c)

a) School of Economics and Business Telkom University Bandung, Indonesia
andrya[at]telkomuniversity.ac.id
b) School of Economics and Business Telkom University
Bandung, Indonesia
nathawijaya[at]student.telkomuniversity.ac.id
c) School of Economics and Business Telkom University
Bandung, Indonesia
dianpramadhani[at]telkomuniversity.ac.id

Abstract

The integration of blockchain technology, particularly through Decentralized Finance (DeFi), has reshaped the finance industry. By January 2023, the DeFi crypto market reached a -46.21 billion market capitalization, catering to 6,686,500 user bases. DeFi outperforms Traditional Finance (TradFi) with its lower fees, inclusivity, faster processing, accessibility, transparency, programmability, security, and absence of intermediaries. For the end user, DeFi advantage lies in the self-custodial of their own asset, the ability of peer-to-peer transactions, and leveraging programmability for complete control and creativity. However, despite the rapid growth of DeFi, there is a notable scarcity of comprehensive research on DeFi mapping, specifically in terms of its benefits, risks, financial services, and technology. This study aims to understand DeFi mapping characteristics and bridge the research gap in DeFi knowledge and mapping.

Keywords: Digital Economics, Decentralized Finance, Financial Institution, Traditional Finance, Mapping Characteristics, Blockchain

Topic: Information Industry and Management